The coal miner has reported a R2.67 billion revenue for the half-year and plans to diversify more.
Despite the impact of the ongoing Covid-19 pandemic, Wescoal Holdings has generated a higher revenue of R2.67 billion for the six months ended September 2021, compared with R2.09 billion in the prior period.
CFO Jubilant Speckman says she is proud of the company’s impressive level of cash generation under the current economic climate. She accredits the increase in revenue to “improved sales levels due to a lower Covid-19 impact compared to the prior comparative period”, as well as to the ramping up of the company’s new Moabsvelden operation.
“I am proud of the performance of the group and also of the ramp up of Moabsvelden,” she explains. “Our host communities have been of great support and the staff have been really committed to support the group, even during difficult periods.”
The increased cash generation has also allowed Wescoal to meet its debt commitments and invest in sustaining and growth capex.
But Jubilant adds that there are even more exciting things on the horizon as the group aims to become a diversified energy company in the medium to long term, thereby transitioning from being a coal-focused mining and trading company. “Key strategic opportunity lies in clean energy and Wescoal has already started looking at opportunities in the wind and solar markets.”
She concludes that the first half of the year has set a good tone for the second half.
